Landmark Cars surges 7%, hits new high on strong business update

The company said it witnessed a strong revenue growth, with multiple tailwinds in the form of rising income levels, new models launches by our partner OEM and changing lifestyle preferences

Shares of Landmark Cars hit a new high of Rs 598.60, surging 7 per cent on the BSE in Wednesday's intra-day trade, after the company said it recorded a strong 41.29 per cent growth in total revenue from operations at Rs 3,384 crore for the nine months ended December 2022 (9MFY23). The company had made its stock market debut on December 23, 2022.

In the past one week, the stock has rallied 13 per cent, as compared to 1.5 per cent gain in the S&P BSE Sensex. Landmark Cars is now trading 18 per cent higher against its issue price of Rs 506 per share. It has bounced 38 per cent from its 52-week low of Rs 433.20, touched on December 26, 2022.

"The nine-month (April to December) period witnessed a strong revenue growth, with multiple tailwinds in the form of rising income levels, new models launches by our partner OEM (Original Equipment Manufacturer) and changing lifestyle preferences leaning towards a rise in premium/luxury automobile ownership. The highly profitable after-sales business showed strong growth in the same period," Landmark Cars said in its business update.

The vehicle sales revenue in 9MFY23 could have been higher as the sales was impacted by chip shortage and the supply chain disruption due to geo-political situation. The total revenue from after-sales service and spare parts in the previous year was skewed in favour of the second half of the year due to partial Covid-19 lockdown in the first half, the company said.

That apart, during the period under review, the company opened 3 new outlets of BYD brand in Delhi-NCR and Mumbai, 2 new outlets of Jeep brand in Navi Mumbai, and replaced two small workshops with a much larger workshop of Mercedes Benz in Kolkata. The company also shut 7 non-viable outlets of Renault in Punjab.

The company said it has utilized Rs 138 crore as on December 31, 2022 out of the net proceeds of initial public offer (IPO) to repay working capital loans, in-line with utilisation of net proceeds as stated in prospectus. The company had raised Rs 552 crore through IPO.

Landmark Cars is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. Landmark Cars also has a commercial vehicle dealership for Ashok Leyland in India. It has a presence across the automotive retail value chain, including sales.

Landmark Cars is a leading automotive dealership for major OEMs with strong focus on high growth segments (premium & luxury). The growing presence in after-sales segment is leading to predictable growth in revenues and superior margins. Inclusive business model capturing entire customer value chain and robust business - leveraging upon innovation and digitization are key triggers and highlights of the company.